Foresight Capital Management hit by rising rates as assets drop 27%
Bernard Fairman, Foresight Group chair, highlighted strong inflows into higher margin retail products, which attracted £159m during the last six months.
Assets in the period at Foresight Capital Management (FCM) fell by £350m, including inflows of £170m offset by outflows of £377m.
Foresight said the 27% drop at FCM was due to the continuing impact of higher interest rates on the valuation of long duration infrastructure assets.
FCM was established by Foresight in 2017 for retail and institutional investors to access real assets and sustainable investment through actively managed open-ended funds investing in listed securities.
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The unit currently manages the FP Foresight Sustainable Future Themes, FP Foresight Infrastructure Income, FP Global Real Infrastructure, FP Sustainable Real Estate and Foresight SICAV funds.
Despite the drop in assets, Foresight said opportunity growth in the last six months means it now has a total future deployment pipeline in international infrastructure in excess of £5bn.
At a group level, total assets under management and funds under management were £12.1bn and £8.8bn, respectively, down 1% and 3% during the period, not accounting for currency changes.
Foresight's private equity division achieved a boost in institutional fundraising through a £30m third close of the Foresight North East fund. The division has a pipeline of new fund mandates and additional further fund closes, the asset manager said.
However, in comparison to retail fundraising, it added the market for institutional fundraising «remains challenging».
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